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Economist and former Rector of the Ghana Institute of Management and Public Administration (GIMPA), Professor Stephen Adei, has called for an increase in Ghana’s betting tax from 10% to 50%, describing betting as a “disastrous habit” that needs to be discouraged.
Speaking on TV3’s Hot Issues on December 22, Prof. Adei labeled betting as a vice requiring higher taxation, akin to taxes on cigarettes and alcohol, often referred to as “sin taxes.” He stated:
“As a father, as a Christian leader, I will want betting taxes to be 50%. Betting is one of the disastrous habits that we should discourage.”
This suggestion contrasts with President-elect John Dramani Mahama’s campaign promise to abolish certain taxes, including the 10% betting levy, within his first 100 days in office.
Prof. Adei also emphasized the need for a comprehensive review of Ghana’s tax system, citing inefficiencies and the excessive number of levies. He pointed out that taxes like the e-levy, though controversial, are easier to collect and should be maintained, albeit at a reduced rate.
“There are too many taxes. For example, I imported something and saw about 21 taxes on car importation—that is ridiculous. We need a total tax review, focusing on taxes that are easier to collect and more widespread,” he explained.
He lamented the low compliance with income tax, noting that only about one million Ghanaians pay income taxes out of the 33 million population. He advocated for the enforcement of property taxes, suggesting that local governments, especially in urban areas like Accra, should leverage property rates as a sustainable revenue source.
Prof. Adei also reflected on the outgoing Akufo-Addo administration, attributing some of its challenges to poor expectation management. He cautioned President-elect Mahama to manage Ghanaians’ expectations carefully, warning that over-promising could lead to disillusionment.
“Expectations management is very important in running your home, organization, and country. The first thing I will advise [John Mahama] is to manage expectations,” he concluded.
This call for a balanced approach to taxation and governance comes at a critical time, as the incoming administration prepares to address Ghana’s economic challenges.
